That isn't padding in the sense of "padding that makes traffic confirmation not work," it's padding that makes dragnet log collection not work. The client sends out one cell every 1.5-9.5 seconds. This prevents your ISP's netflow logs from accurately separating your Tor traffic into individual connections, rendering dragnet traffic confirmation infeasible.
In case you're not aware how they work, netflow logs separate flows of TCP packets into "streams" corresponding to different connections by counting each set of TCP syn/syn-ack/ack packets to new IPs as different connections. This way, they can say "here are all the packets that the user sent to this destination" and "here are all the packets that the user sent to this other destination" even if you're sending them both at the same time. From Tor's perspective, this would allow law enforcement to perform after-the-face traffic confirmation attacks by subpoenaing your ISP for their netflow logs corresponding to your IP address, singling out your Tor related flows (because all non-bridge Tor nodes being publicly listed, non-bridge Tor traffic is easy to identify), and correlating the size of your outgoing Tor traffic for a particular flow in a particular time to the size of a suspect server's incoming traffic from one single flow at around the same time, deanonymizing you.
Tor nominally frustrates this, because all connections are multiplexed over one TCP connection to your entry node, and that connection to your entry node lasts for ten minutes. Because of this, any netflow logs should just separate your traffic into ten minute long flows that don't actually correspond to you actually connecting to individual websites, because the actual TCP syn/syn-ack/ack packets are encapsulated in Tor cells and encrypted, and they are all sent over the same TCP connection to the same IP address for the length of time that that particular circuit is being used (ten minutes). So, if you visit five websites during those ten minutes, your netflow logs would show that you sent all that traffic over one connection and one flow, and the traffic size from that flow would not correspond whatsoever to the traffic size to any particular one of the servers you had connected to. This would render netflow log analysis unusable from the perspective of performing traffic confirmation.
However, most netflow logging software considers a flow to be ended after 10 seconds of inactivity, and splits any new traffic into a separate flow even if this new traffic is going to the same IP address and no TCP syn/syn-ack/ack/rst packets have been sent. So unless you're visiting a new site every ten seconds, Tor's multiplexing of TCP connections over one circuit would not prevent the netflow logs from showing each individual connection to a new website, and it would therefore still be possible to use netflow logs to perform traffic confirmation.
Tor fixes this by sending a cell every 1.5-9.5 seconds, so there is never a ten second period of inactivity over a circuit even if you never actually use the circuit. As a result, netflow logs will just show one large ten minute connection instead of a bunch of individual connections corresponding to you connecting to different websites over Tor, as the logging software will see that Tor circuit as one long active connection. This makes the use of netflow logs for traffic confirmation infeasible, as the number of bytes sent over any one netflow flow will not correspond whatsoever to the number of bytes of traffic sent to any given server that you visit.
This does not prevent traffic confirmation if the NSA/FBI has specifically singled out your internet connection and is actively monitoring you. If they are doing that, they can just collect all of your traffic and perform traffic confirmation with the same level of difficulty as they had before this feature was added. 586 bytes of cover traffic every couple seconds is not enough to significantly hinder traffic confirmation, as the average website is two megabytes in size, and even with some of the content stripped out (javascript, flash, etc), the percentage of cover traffic to non cover traffic will still be far less than 1% -- inconsequential.
All this feature does is prevent the NSA/FBI from investigating a past event by calling up your ISP and getting the netflow logs they keep for all their users and using that to break Tor. It makes it infeasible to perform traffic confirmation after the fact. But it does not prevent someone who is actively monitoring your connection specifically from performing traffic confirmation.